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COPYRIGHT 2018 KIEWIT CORPORATION
A MODERN DAY CONSTRUCTION INDUSTRY COMPLIANCE PROGRAMChris Caron
• More than 130 years of construction excellence
• Operations throughout North America
• $8.7 billion in 2017 revenue
• Privately held – owned by active employees
• Industry-leading safety and quality performance
• One of the largest privately owned equipment fleets in North America
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KIEWIT CORPORATION
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We value: PEOPLE.
INTEGRITY.EXCELLENCE.STEWARDSHIP.
Getting work at the right price
Building work at the lowest cost
Taking care of our assets
VALUING THE BASICS
THE ESSENTIALS OF SUCCESSFUL CONTRACTING
Approach to business• Ethical• Fair• Conservative• No surprises
Core values• People• Integrity• Excellence• Stewardship
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• Geography
• Contract Size & Duration
• Private versus Public Clients
• Project Team Experience
• Markets
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COMPLIANCE COMPLEXITY
GEOGRAPHY
16%
27%
12%
24%
5%
16%
$1M or Less
$1M-$5M
$5M-$10M
$10M-$50M
$50M-$100M
$100M or More
Projects by contract value as reported to ENR, 2016
CONTRACT VALUE
11
16
2426
Superintendents Project Managers District Managers Executives
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STRENGTH THROUGH QUALITY PEOPLE
Average Years with KiewitYears of Service
14,400 15,60018,500
21,000
14,35011,000 9,600
12,500
10,30010,400
11,500
12,000
10,400
11,50010,300
9,500
2010 2011 2012 2013 2014 2015 2016 2017
Craft* Staff
The Kiewit Workforce
* Includes hourly and salaried staff
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KIEWIT MARKETS
Air
Bridge
Marine and port facilitiesRail
Roads
Tunnels
UPSTREAM
Offshore | Oil sands
MIDSTREAM
Gas processing
Compressor and pump stations
Pipelines and terminals | LNG
DOWNSTREAM
Refining | Petrochemicals
Dam
Desalination
Water supplyWastewater
Contract mining
Mine infrastructure
Mine planningOre processing
Owned operations
Commercial
Data center/mission critical | Education
Government | HealthcareHospitality | Manufacturing/industrial
Mixed use/retail | Sports and
entertainment | Transit facilities
Gas-fired
Coal retrofit
Coal-firedPower delivery
Renewables
Nuclear
Hydroelectric
Mineral processing | Cement
Bulk manufacturing | Industrial water
Metals | Pulp and paper | Specialtychemicals | Food & beverage
Pharmaceuticals & advanced
manufacturing
I-40 Fast Fix 8, Tennessee
TRANSPORTATION
Kiewit completed the I-40 bridge replacements
7 MONTHS AHEAD OF
SCHEDULE.
Stampede Tension Leg Platform, Gulf of Mexico
OIL, GAS & CHEMICAL
Kiewit completes more than
50,000 TONS
of offshore module fabrication work each year at its Ingleside,
Texas yard.
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Paradise Combined-Cycle Project, Kentucky
POWER
Kiewit’s construction of new natural gas-fired
generation added enough energy
to the grid to power more than
14 MILLION homes.
BUILDING
The $200 million,535,000-square-foot
TD Ameritrade Campus was designed
and built to be a
SUSTAINABILITY
ICON.TD Ameritrade Campus, Nebraska
Carlsbad Desalination Plant, California
WATER / WASTEWATER
The Carlsbad Desalination Plant is the
LARGEST SEAWATER
DESALINATION PLANT
in the Western Hemisphere.
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MINING
Buckskin Mining Company, Wyoming
Kiewit has over
70YEARS
of experience in the mining industry.
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EARLY COMPLIANCE PROGRAM
2005• Legal based• Online Training• Manuals• Audits
2008• Operations based• Enhance Training• Self Assessments• Reporting
2014• SMO Ownership• Managing to Values• KieCore Solutions
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EARLY CHALLENGES – Plan versus Assessment
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50,000
55,000
60,000
65,000
70,000
75,000
80,000
85,000
90,000
95,000
100,000
2010 2011 2012 2013
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EARLY CHALLENGES – Broad Based Training
• Compliance roll to find problems and report them
• “Uh oh! Compliance is here!”
• Auditors don’t solve problems
• Disagreements over “issues”
• Disagreements over corrective actions
• “So who’s losing their job?”
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EARLY CHALLENGES – Us versus Them
• Compliance or Legal responsible for regulatory knowledge
• Limited expertise for most topics
• SMEs had little engagement (not their day job)
• Primary role was to answer questions if asked
• Few had operational experience
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EARLY CHALLENGES – Subject Matter… Experts?
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• Big, thick manuals only reiterate the requirements
• Appendixes full of regulatory language
• Few procedures or guidance given
• Infrequently updated
• Infrequently read
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EARLY CHALLENGES – Did You Read the Manual?
• Every operating district required a District Compliance Manager
• Repurposed people into Compliance Managers
• Full-time or part-time?
• Team or solo?
• Lack of consistency
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EARLY CHALLENGES – Too Many Managers?
• Operations personnel resistant to change
• Upper management remembers the simpler days
• Compliance managers weren’t prepared to be change managers
• “Just do it this way… because I said so.”
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EARLY CHALLENGES – We’ve always done it…
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• Full-time compliance managers
• Each supports specific districts• Geographic
• Market
• Support from project award thru completion
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MODERN PROGRAM – Regional Compliance Managers
• Electronic solution on shared system
• Puts the audit checklist up front
• Unique plans for each location• Relevant topics
• Specific risks
• Risk Managers
• Document locations
• Risk levels (Baseline/Standard/Elevated)
• Mitigations (Procedure/Training/Monitoring)
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MODERN PROGRAM – Mitigation Action Plan (MAP)
• Project team develops plan
• RCMs guide the process
• Specific risks by location type
• Includes key SMOs
• Management approves each plan
• Updated annually at minimum
• Ramp down risks
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MODERN PROGRAM – Mitigation Action Plan (MAP)
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• The first visit shouldn’t be the audit
• Get processes up and running
• Provide targeted, live training
• Provide the team with the tools they need• Standard Operating Procedures
• Electronic solutions/systems
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MODERN PROGRAM – Project Startup Focus
• Bigger projects, bigger risk?
• District offices versus construction projects?
• Maintenance facilities versus mines?
• Two options:• Location Type
• Risk Score
• Assessment against MAP
• Includes key SMOs
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MODERN PROGRAM – Risk-based Assessments
• All topics have SMOs
• SMOs from operational groups
• Specific responsibilities• Knowledge of regulatory changes
• Annual MAP review/update
• Develop SOPs
• Develop tools/solutions
• Review/update training
• Enterprise Risk Assessment
• Legal provides advice
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MODERN PROGRAM – Subject Matter Owners
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• Targeted training based on• Job role
• New hire
• Project risks
• District risks
• Live training as mitigation
• Material regularly updated
• Management visibility
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MODERN PROGRAM - Training
• New system with workflow functionality
• “Primary Cause” identification for all issues
• More shared service support for transactional items
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FUTURE PROGRAM
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QUESTIONS?